Do I Need Term Insurance if I Do Not Have Dependents?

In simple words, a term insurance plan is a life insurance product that provides coverage for a certain term 

In this article let us get to understand the importance of a term insurance plan whether you have dependents or not.

Note: Know more about what is term insurance first before reading this article.

Why Term Insurance Plan?

Let us understand this by taking the instance of Anjali Gupta is an IT professional who is 40 years of age. She has no dependents. So, does she need to buy a term insurance policy?

The key intent to buy a term plan is to protect the financial future of the family in case of any adversity. A term plan does not offer any maturity benefit. So, if Anjali Gupta has a basic term insurance cover in place from the respective employer, buying a separate individual plan is not needed.  

But the question remains, what if one does not have any dependents. Does one still need to include term insurance in the portfolio? Let us explore certain circumstances that would help us to understand whether a term plan is needed if you do not have dependents.

Future is Uncertain

So, you might not be having dependents right now. But at some point in the coming times, you might want to get married or even start a family. Besides, you have parents who will get old with time.

Therefore, it becomes a responsibility to take care of the needs and ensure financial protection in the best possible way. Life is uncertain and what if you are not around tomorrow?

And if you think of buying the term plan when needed then surely you are committing a mistake. A delay in buying the term insurance will only lead to more premiums. If you are not aware, one of the key factors that determine the term insurance premium is age. For instance, if you choose to buy the plan at the age of 35 instead of 26, the term insurance premium will be higher. The idea is simple the early you buy the term plan, the lower will be the premium. A term insurance policy is simple and easy to understand life insurance products.

Note: You can easily calculate the term plan premium by using the term insurance calculator online tool.

Helpful in case of Liabilities

Let us just assume that you do not intend to get married. However, you will have parents. Have you ever imagined what would happen to them if you have taken any loan such as a home loan, car loan or any other such liabilities? You surely would not want parents picking up the pieces after you are not around. Besides, you would also not want to lose the asset proceeds to recover from any of the liabilities. Having the term insurance plan in place will take care of all the liabilities. Your parents need not undergo any mental stress. 

Tax Benefits

In respect of the premium paid, you can simply avail of a deduction of sum up to Rs 1.5 lakh each year under Section 80C of the IT Act. Besides, the death benefit also remains tax-free under Section 10 (10D).

Note: Tax benefits are subject to change as per the existing laws.

Can I Buy the Term Insurance Policy Online?

Yes, anyone who is looking forward to buying a term insurance plan online can do so.

In fact, in the times of COVID-19, it is highly recommended to buy the term plan online and avail of it at special premium rates.

One of the key term insurance benefits of buying the term insurance plan online is that you can invest time in conducting thorough research. With a plethora of term insurance companies available in India, zero down a policy might appear a challenging task.

However, going online will help you to compare the quotes, features, benefits and whatnot. Moreover, buy the term insurance policy that fulfils your requirements. 

One of the checks that the insurance company conduct is the sum assured in the term plan should be in line with the income of the individual. Ideally, the sum assured should be ten times the yearly income. However, this can go up to even 20 times on the premise of age and income as well. Buy the term insurance for a protected tomorrow. 

Wrapping it Up

Most often people think that a term insurance policy is not of much help. It is also considered as just another expense and is likely ignored. The financial consequences of not having adequate insurance coverage are severe.

Regardless of whether you have dependents or not, spare a moment and buy the term insurance plan online. A term plan is a protection and not another financial expense. A term insurance policy will be helpful at every important milestone of life.

Note: Check out the best term insurance plan in India and choose one that suits your requirements.